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MakeMyTrip increases marketing and sales promotion costs by 31.2% in Q3
MakeMyTrip's Q3 profit surged to $27.1 million compared to $24.2 million in the same period last fiscal
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Travel platform MakeMyTrip has reported its all-time high quarterly revenue, fuelled by strong travel demand. In a US Securities and Exchange Commission (SEC) filing, MakeMyTrip said its 3rd quarter revenue jumped by 24.8 percent to $267.4 million. Last year, the company's December quarter revenue stood at $214.2 million.
The company increased its advertisement and promotion costs during the quarter, along with the service costs. MakeMyTrip's marketing and sales promotion cost climbed by 31.2 percent to $47.3 million in Q3 compared to $36.1 million in the same period last fiscal. The customer inducement cost also went up, reaching $80.5 million in December 2024, up from $66 million in Q3 2023.
MakeMyTrip's service cost surged to $77.4 million from $62.4 million, as per the filings.
MakeMyTrip's Q3 profit surged to $27.1 million compared to $24.2 million in the same period last fiscal.
The international business of the online travel aggregator has witnessed strong growth. In Q3 FY 25, the international air ticketing revenue increased by more than 32 percent YoY. Similarly, the international hotels' revenue grew by over 63 percent YoY.
The Group CEO of the Nasdaq-listed company, Rajesh Magow said, "Strong performance across all business segments with an accelerated YoY growth rate of 26.8 percent in gross booking value (GBV) in constant currency during the reported quarter compared to a growth rate of 22.9 percent during the first half of the year".
The rise in spiritual tourism has also boosted the revenue of the travel platform significantly. According to MakeMyTrip, the inbound bookings crossed the 1,000-plus rooms per day milestone in Q3.
The hotels and packages business of MakeMyTrip witnessed a 17.2 percent rise in revenue, reaching $147.1 million in Q3, up from $125.5 million in the corresponding quarter last fiscal.
The bus ticketing business of MakeMyTrip witnessed a 31.7 percent growth in the quarter with revenue surging to $31.8 million compared to $24.2 million in the same period last fiscal. The company registered a 30.2 percent increase in profitability in the bus ticketing segment in the same quarter.
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